Yit optimistic on Caverion business
04 June 2013
Finnish contractor Yit predicts new business Caverion Corporate will achieve group revenue of over €1.3 billion and EBITDA of more than €50 million in the second half of 2013.
Caverion Corporate is a company to be formed out of the partial demerger of Yit, due to complete 30 June, 2013. Yit’s Building Services business is to be transferred to the new company, while Yit’s Construction Services will continue to operate as Yit.
The new company has three core objectives. To improve profitability in Northern Europe, pursue strong growth in Central Europe, and to take on long-term service agreements in the service and maintenance business.
In order to improve profitability in Northern Europe, Caverion has made a number of personnel cuts. The aim is to decrease the number of personnel by 600 employees in 2013; of these, 200 employees were cut during the first quarter.
Caverion will pursue strong growth in Central Europe both through acquisitions and organically.
According to Caverion, there are opportunities for growth in service and maintenance in Norway, Germany and Austria. In 2012, the service and maintenance business accounted for 55% of Caverion’s business.
Meanwhile, Yit announced on May 23, 2013 that it has made an initial, non-binding offer to acquire Hochtief Service Solutions. As Hochtief relates to the Building Systems operations of Yit, the business – if acquired - would be transferred to Caverion Demerger.